Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith's Argument in the Greenhouse: The International Economics of PDF

By Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith

ISBN-10: 0203974182

ISBN-13: 9780203974186

ISBN-10: 0415149088

ISBN-13: 9780415149082

Masking either the constructing and constructed international, this booklet identifies vital new rules to foster powerful agreements in emissions and stop worldwide warming: life like regulations which should still obtain foreign and family aid.

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Extra info for Argument in the Greenhouse: The International Economics of Controlling Global Warming

Example text

It is obvious that this constitutes a far harder task than the setting of Pareto optimal taxation inside an existing compliance mechanism. In this chapter we review the only existing international agreement to limit climate change, the Framework Convention on Climate Change; we analyse its provisions, extract the economic logic which underlies its legal statements and identify three areas crucial to the overall effectiveness of implementation: achievement of stated goals, efficiency of implementation mechanisms and stability of negotiated agreements.

1993) analyse the effect of carbon taxes on different fuels in different types of agreement. They find that in a complete global agreement the tax per unit of carbon should be equal across fuels. However, if the agreement is incomplete taxes should be differentiated across fuels; this is because different fuels have different quantity/price elasticities and so as the price of traded fuels drops the increase in consumption in non-participating countries will be heterogeneous across fuels. Therefore, an optimum tax regime which accounts for participating and non-participating countries will levy different taxes per unit of carbon.

Conditions for macroeconomic efficiency Given an understanding of the value of recycled revenue, it is likely that governments would take such costs into account when deciding how much CO2 to control nationally, and how many permits to buy or sell on the international market. The inclusion of recycling benefits into the total cost calculations means that the initial distribution of permits may affect the total cost of reaching the emissions target, and thus the overall efficiency of the permit mechanism.

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Argument in the Greenhouse: The International Economics of Controlling Global Warming by Sujata Gupta, Stephen Hall, Nick Mabey, Clare Smith


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